The Tokyo Electric Power Co., Inc. (TEPCO) has today executed two Heads of 
Agreements (HoAs) with Chevron Australia Pty Ltd and Chevron (TAPL) Pty Ltd 
("Sellers") with regard to acquisition of an equity interest in and LNG offtake 
from the Wheatstone LNG Project. TEPCO anticipates receiving up to 4.1 million 
tons per annum (mtpa) of LNG from the Wheatstone LNG Project. The parties to the 
HoAs will from now negotiate detailed agreements for the equity transaction and 
for the sale and purchase of LNG from the project.

In March 2008, Chevron Corporation (Chevron) announced plans to develop the 
Wheatstone LNG Project. Chevron Corporation is the parent company of the Sellers, 
which hold petroleum titles for areas offshore North West Australia where the 
Wheatstone and Iago gas fields are located. The Wheatstone LNG Project is planned 
as an integrated LNG project, including offshore natural gas production and 
gathering as well as processing and delivery of LNG at an onshore site at Ashburton 
North on the coast of Western Australia. The Sellers are planning to build an LNG 
plant with a capacity of 8.6 mtpa, which is anticipated to commence operation 
between in 2016 and 2018.

TEPCO approached Chevron when Chevron announced the project, and after more than 
one year of discussion, the parties have agreed to the basic terms and conditions 
for the sale and purchase of LNG and for the purchase of a 15% equity interest in 
the Chevron petroleum titles covering the gas fields which will feed the Wheatstone 
LNG Project.

 TEPCO's equity interest will include an overall 11.25% participating interest in 
the Wheatstone LNG Project. TEPCO anticipates lifting approximately 1.0 mtpa of LNG 
from its equity interest in the project. TEPCO will purchase 3.1 mtpa of LNG produced 
at the Wheatstone LNG Project from Chevron. 

TEPCO's participation in the Wheatstone Project will be its second upstream gas 
project participation, following the Bayu-Undan Project. The total offtake of 4.1 
mtpa will be one of TEPCO's largest long-term LNG offtake arrangements, equivalent 
to more than 20% of TEPCO's annual consumption of LNG.

TEPCO considers participation in the LNG upstream to be a key method for both 
maintaining secure supplies of energy and expanding the scope of its business, and 
the Wheatstone LNG Project represents an extension of the TEPCO Group's strategy of 
involvement in the LNG value chain. TEPCO believes that its participation in the 
Wheatstone LNG Project will increase the security and economic efficiency of its fuel 
procurement. TEPCO's participation in the upstream development of LNG, a low 
environmental impact fuel, also signifies a continuing contribution toward a low 
carbon emission society. 

Appendices 
 Appendix: Abstract of HoAs (PDF 14.3KB) 
 Reference (PDF 17.6KB)